Analyst Michaël van de Poppe anticipates a 10% Bitcoin retracement before the release of CPI data, targeting a range of $75,669–$81,193.
Bitcoin’s remarkable surge this week has continued, with the cryptocurrency currently trading around $86,000. This follows a significant breakthrough last Tuesday when Bitcoin overcame resistance at $68,000 amid the U.S. election results. With Donald Trump set to assume the presidency, Bitcoin’s price began to rise rapidly.
The rally intensified during the early hours of the Asian trading session, propelling Bitcoin to an intraday high of $89,964. However, this peak sparked a bearish reaction, with sellers stepping in to prevent the cryptocurrency from maintaining levels above this milestone.
At the time of reporting, Bitcoin had gone down to $86,386.10, though it still reflects a 5.30% gain over the past 24 hours and an impressive 25.69% increase over the past week.
Warning for Further Retracement
Michaël van de Poppe, the founder of MNConsultancy, observed that the market is gaining momentum but anticipates a retracement leading up to the release of the Consumer Price Index (CPI) data on November 13. He identified a “sweet spot” for entries, suggesting a 10% correction toward the CME gap before continuation.
#Bitcoin is up to $90,000 and I think we’re about to get started with the markets.
The sweet spot is having a 10% correction towards the CME gap before we continue.
I’m slightly bearish going into CPI tomorrow. pic.twitter.com/dfpUc2df1k
— Michaël van de Poppe (@CryptoMichNL) November 12, 2024
Van de Poppe’s target range for this retracement lies between the 38.2% Fibonacci retracement level at $75,669.64 and the 61.8% level at $81,193.13.
He also highlighted $66,729 as an “ideal area to hold” and pointed to $64,130.63 as a potential level where liquidity could be taken out, signaling areas where market participants might seek to fill orders before prices move higher.
Overbought Conditions
Technical indicators further suggest that Bitcoin may be entering overbought territory. The crypto trades above the upper Bollinger Band, typically indicating that the asset may be overbought or due for a consolidation or correction phase.
Bitcoin 1 day Chart
Furthermore, the 14-day Relative Strength Index (RSI) stands at 75.20, surpassing the standard overbought threshold of 70. This suggests that Bitcoin could face downward pressure or a correction in the short term.
Rising Retail Interest
Meanwhile, technical analyst Ali Martinez has advised investors to exercise caution amid surging retail interest in Bitcoin. He noted that while growing retail interest often signals increased capital inflow into the market, historical data shows that heightened search activity for Bitcoin often aligns with price corrections.
This pattern suggests that Bitcoin’s price tends to decline when its search activity increases, warranting vigilance among investors.
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